Project generator Mirasol Resources has signed an option agreement with subsidiaries of global major Newmont to acquire the Inca gold project, in northern Chile.
The agreement will add to Mirasol’s portfolio a district-scale and underexplored, intermediate sulphidation epithermal project.
“This is an attractive transaction allowing Mirasol to acquire Inca Gold by exploring and drilling the property. If our exploration demonstrates the potential for a Newmont size target, the agreement will allow them to earn back 70% of the project by reimbursing our costs and investing in significant additional exploration expenditures,” said president and CEO Norm Pitcher.
Mirasol noted that the project hosted multiple attractive targets that had never been drill tested, and said it fitted well with the company's strategy to fund drilling on high quality prospects with favourable infrastructure.
Mirasol was granted the option over five years to earn-in 100% of the project, subject to a 1.5% net smelter royalty by drilling 1 000 m on the project over two years; and incurring $3-million in exploration expenditures over five years.
The 14 000 ha Inca project is located in Region III of Chile, about 100 km north of Copiapo and 17 km east of the town of Inca de Oro.
Newmont's exploration work to date has been limited to surface and prospecting activities, which have identified five target areas, none of which have been drill tested.
The project is within the Inca De Oro mining district, which hosts Santiago Metals' San Pedro de Cachiyuyo copper/gold tourmaline breccia deposit and PanAust/Codelco's Inca de Oro copper/molybdenum/gold porphyry deposit.